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Location: Was Midvalley Oregon; Now Eastside Seattle area
13,073 posts, read 7,511,991 times
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Quote:
Originally Posted by jtab4994
What do you consider "usurious" rates? My kids are paying between 3.76% and 5.05% on Stafford loans taken out in the 2010's. Are older loans higher?
I suppose it would be nice to allow borrowers to refinance Stafford loans if rates drop, though that's going to be a moot point for a few years now.
My son was paying unsubsidized Stafford, IRRC, 4%. to 1.25%, 2002-2006. He saw declining rates. Refinanced in a consolidation ~3% +/-, 15 yr amortization. We are paying consolidated PLUS @2.875%.till we are 82/79 , 2029, 25 yr amort.
YLMV.
Consolidation was then based on the weighted average of outstanding staffords.
My son was paying unsubsidized Stafford, IRRC, 4%. to 1.25%, 2002-2006. He saw declining rates. Refinanced in a consolidation ~3% +/-, 15 yr amortization. We are paying consolidated PLUS @2.875%.till we are 82/79 , 2029, 25 yr amort.
YLMV.
Consolidation was then based on the weighted average of outstanding staffords.
YLMV
Thanks for the reply. I consider my kids' Stafford rates of 3.76%-5.05% pretty reasonable considering the direction rates are heading now.
It's tough to keep all this stuff straight when people toss around figures like 9.0% without specifying which type of loan they are talking about, what year it's from, and whether it's public or private.
.....suffered all these years of usurious interest and misdirect......
These are unsecured loans. Right now unsecured loan rates are between 11 and 32%. If anything, student loan interest rates are dangerously low. Would you loan someone tens of thousands of dollars to major in liberal arts, which means they'll be folding clothes at the Gap for the rest of their lives? Student loans should be underwritten like any other loan. If they were, we wouldn't be in the current situation.
Never had any debt. I had good grades and a 34 on the ACT, but got rejected from all my prestigious reach schools --- I didn't really have an "angle" that appeals to admissions officers, and I was young and arrogant and probably came off that way in my essays. So I went to a decent-but-not-great state school for free.
I guess I see both sides of this. It seems like complete debt relief --- even if just done as a one-time payment --- would encourage more people to get degrees the job market doesn't need, and encourage colleges to keep jacking up tuition. But obviously crippling the consumption of people with degrees, because they have almost no discretionary income, isn't great for the economy either. The $10k relief is probably fine, but it's a band-aid that I wouldn't expect to have much long-term effect on college costs, the economy, or people's living standards.
Lol, what? The applications open in October for the program. It's said that the process for approval will take 4-6 weeks. By December, most will have been forgiven.
It is not a matter of if, but when.
At this point, it will be career suicide for any candidate to not back this sort of relief program. The only ones I could foresee surviving that storm are the reps from extremely rural, red parts of the country.
It's the same reason why you'll never see a repeal of Medicare or Medicaid or SSI. It's all talk. No one (of material importance) is going to stand in the way of this going through. They will be annihilated in their next election.
Congress has not voted for this and will not likely vote on it anytime soon. If Biden goes ahead with an illegal executive order it will likely end up in court.
Congress has not voted for this and will not likely vote on it anytime soon. If Biden goes ahead with an illegal executive order it will likely end up in court.
The EO has not been published either on the WH website or the Federal Register.
Nothing can happen until after that.
The EO has not been published either on the WH website or the Federal Register.
Nothing can happen until after that.
It's been over 1 month now
I'm sure we'll hear something after the mid-term elections when Biden and the democrats no longer need the votes he is "buying" with this illegal scheme.
Student loan forgiveness is not going to happen without congress. Biden can NOT spend billions with an executive order. He proposed this in order to gain dem votes in the mid-term elections. He can't do it and it will be swept under the rug in December. Good luck all.
Yep. Biden is lying in an attempt to get votes...again.
These are unsecured loans. Right now unsecured loan rates are between 11 and 32%. If anything, student loan interest rates are dangerously low. Would you loan someone tens of thousands of dollars to major in liberal arts, which means they'll be folding clothes at the Gap for the rest of their lives? Student loans should be underwritten like any other loan. If they were, we wouldn't be in the current situation.
It’s totally amazing that I work with a lot of people in the federal government with just a bachelor’s degree in liberal arts who are now making six figures. They did start out at low pay, but were able to work their way up over time. The idea that there is a plethora of people working in retail/food with a bachelor’s degree who cant find anything else is a myth. I did have one friend who worked in a restaurant, but she actually kept that job after she started in teaching because it was a part-time job in a tourist location that paid very well. She was doing that job because she WANTED to, not because she couldn’t find anything else.
It’s totally amazing that I work with a lot of people in the federal government with just a bachelor’s degree in liberal arts who are now making six figures. They did start out at low pay, but were able to work their way up over time. The idea that there is a plethora of people working in retail/food with a bachelor’s degree who cant find anything else is a myth. I did have one friend who worked in a restaurant, but she actually kept that job after she started in teaching because it was a part-time job in a tourist location that paid very well. She was doing that job because she WANTED to, not because she couldn’t find anything else.
If things are so great then why do 43 million college graduates and dropouts need a bailout from the government? It doesn't make any sense.
We have record low unemployment but people can't pay their student loans. Why?
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